HELENA, Mont. — Montana Secretary of State Christi Jacobsen is proud to be a proponent of the interests of businesses throughout the state of Montana. This week, Secretary Jacobsen recognized the federal district court decision that struck down the federal government’s Corporate Transparency Act (CTA) as unconstitutional.
The United States District Court for the Northern District of Alabama held that the Corporate Transparency Act is unconstitutional and goes beyond Congress’ legislative authority.
“This week’s court decision is one more example of why the federal government’s mandatory reporting requirements, and especially the disconcerting process involved, are a disservice to the millions of businesses across the country and especially here in Montana,” said Secretary Jacobsen.
The federal government’s Corporate Transparency Act requires certain legal entities, including most businesses in Montana, to disclose beneficial ownership information to the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN).
On behalf of Montana businesses, Secretary Jacobsen has expressed her concerns regarding the implementation of the CTA to the U.S. Department of Treasury.
“This new law affects nearly every business in Montana, and confusion over compliance is obvious,” Secretary Jacobsen wrote to the Department of Treasury. “We maintain that FinCEN reporting requirements are unnecessarily complex and have so far caused nothing but confusion and distress for America’s businesses.”
Small businesses across the country have expressed frustration and concern with FinCEN requirements, extreme penalties, and lack of resources, including the absence of a functioning live call center to assist with inquiries.
“It’s bad enough that the federal government created another layer of red tape for small businesses across Montana,” said Secretary Jacobsen, “but it’s certainly unacceptable for them to do so by mandating a perplexing system with little to no outreach to the hundreds of thousands of businesses in our state.”
“While we continue to make it easier to do business here in Montana, I once again urge the federal government to delay implementation of its regulatory reporting requirements,” Secretary Jacobsen added. “To continue without proper assistance, education, and notice would be negligent to the businesses across Montana and the nation.”
While the Court’s opinion enjoined the federal government from enforcing the CTA against the Plaintiffs, Secretary Jacobsen is closely monitoring the implications and fallout that this decision may ultimately have on entities that are subject to reporting requirements.